Last Friday the government released positive employment numbers. Even with the government shutdown, the U.S. economy managed to create approximately 220,000 new jobs. This is clearly very good news. Perhaps you are now getting back to work. If you have been looking for work for awhile, you may have recently incurred a significant debt burden. Many people hope they will be able to pay off their debts, move forward and begin thinking about retirement; and some will be successful. Unfortunately, for others that task isn’t so simple. A lot of my clients try to get out of debt, but can’t because of high interest rates, late fees and other charges. Does this situation apply to you? If so, you may want to consider taking action now, instead of waiting 6 to 12 months.
Keep in mind that bankruptcy is “means tested.” In other words, your income for the 6 months prior to filing has to be below certain levels in order to qualify. If you now have a decent job and wait a year or so to address your debts, you may find you are not eligible for a Chapter 7; or, you may have to pay more and over a longer period of time if you are a Chapter 13 candidate. So if you have debt you are not able to pay off and have recently gotten a new job, you should consider how you will handle your debts. The wisest move may be that, along with your new job, you take the opportunity to get a fresh start financially as well.
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